IDIQ is a U.S. federal government contracting acronym meaning indefinite delivery/indefinite quantity. This is a type of contract that provides for an indefinite quantity of supplies or services during a fixed period of time. The legal origin of IDIQ contracts is the Federal Acquisition Regulation, section 16.501.
IDIQ contracts are most often used for service contracts and Architect-Engineering services. Awards are usually for base years as well as option years. The government places delivery orders or task orders against a basic contract for individual requirements. Minimum and maximum quantity limits are specified in the basic contract as either number of units or as dollar values. The government uses an IDIQ contract when it cannot predetermine, above a specified minimum, the precise quantities of supplies or services that the it will require during the contract period.
An IDIQ contract allows for a certain amount of contract process streamlining, as negotiations can be made only with the selected company, and such contracts are exempt from protest, per Federal Acquisition Regulations Subpart 33.